Bitcoin (BTC) Hits $70,000, Will It Go to $90,000? '2023 Decalcomania'

▲ Bitcoin (BTC)

A technical analysis suggests that Bitcoin (BTC) may undergo another correction, forming a lower low relative to a major high, potentially dropping to the early $70,000 range, as it progresses towards $90,000. This diagnosis indicates that the price structure observed at the beginning of the 2023 bull market is being replicated in the current chart.

According to The Crypto Basic on September 17 (local time), Bitcoin's long-term chart shows a repetitive cyclical structure of rallies, sideways corrections, downward liquidity clearance, and subsequent new expansions. The current price structure is forming after a decline from the all-time high range of $124,000-$126,000, roughly between $60,000 and $84,000. In 2023, Bitcoin bottomed at $16,000, then saw an initial rebound to $24,000, surged to $30,000-$31,000, pulled back to the mid-$20,000s, and then began a major uptrend.

The current phase appears to be a larger-scale unfolding of the 2023 pattern. Bitcoin sharply dropped from highs of $124,000-$126,000, falling to the mid-$60,000s, before achieving an initial rebound to the $80,000-$82,000 level. Recent candlesticks are situated around the $76,000-$78,000 mark, and analysis suggests a price compression phase is forming below the upper resistance level of $80,000-$84,000.

The step-by-step scenario presented on the chart outlines a path where Bitcoin reaches the upper $80,000s, then corrects to the early $70,000s, followed by an expansion to the upper $90,000s, a retest of the early $80,000s, and finally reaches the $120,000s. According to the analysis, a temporary retreat to the $70,000-$72,000 range would form at a significantly higher level than the previous low of $56,000, indicating a robust higher low that does not compromise the structural uptrend.

From a Wyckoff pattern perspective, it is interpreted that a typical accumulation range is underway after the decline from $124,000 to $56,000-$64,000. Even if the upper resistance of $80,000-$84,000 is not broken immediately, the buying pressure is supporting the downside, gradually raising the lows, thus completing an accumulation structure.

In the short term, the attempt to break above $84,000 and the defense of the $70,000 support level are considered key turning points for a future rally to $90,000. Despite short-term volatility, the faithful adherence to the 2023 accumulation model suggests that a pullback to the $70,000 level is a healthy consolidation process within the long-term upward trajectory.

[Article Key Summary]

-The possibility of Bitcoin (BTC) undergoing another correction, consolidating a low in the early $70,000s before reaching $90,000, has been raised.

-The current chart shows a structural consistency with the rebound and consolidation patterns that unfolded after the 2023 bottom.

-The defense of the $70,000-$72,000 support level is analyzed as a crucial stepping stone for moving beyond $84,000 towards the $120,000s.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*